1 2 2 SHORT TITLE SECTION 1. This Act may be cited as the "Abandon ment Disaster Demonstration Relief Act". 4 DECLARATION OF POLICY AND STATEMENT OF PURPOSE SEC. 2. (a) The Congress finds and declares that— (1) the abandonment of residential housing in the United States substantially burdens the flow of interstate commerce and impedes the effective utilization of the Nation's housing stock, and the health and welfare of the people of the United States is damaged by the resulting loss of housing units in many urban areas; (2) the abandonment of such housing acts as a contagious disease when it spreads unchecked throughout neighborhoods and entire communities, resulting in the abandonment of standard as well as substandard housing in many cases; (3) certain mortgage guaranty and insurance programs administered by agencies of the United States are relied upon by the holders of mortgages on abandoned residential properties and discourage such holders from taking reasonable corrective actions at the earliest practicable time, thereby imposing a substantial financial burden on the agencies involved in such programs; and (4) the continued unchecked spread of housing abandonment may, in some cases, impair the financial 3 1 2 3 4 position and liquidity of federally related financial in stitutions, and thereby result in an even greater financial burden on agencies of the United States. (b) It is the purpose of this Act to establish a Neigh5 borhood Protection Corporation which will have the 6 authority, on a demonstration basis, to enter and take 7 possession of abandoned residential properties in order to 8 prevent the continued deterioration and destruction of 9 neighborhoods and communities and to hold and assemble 10 parcels of land for the orderly development and redevelop11 ment of neighborhoods and communities. DEFINITIONS SEC. 3. For purposes of this Act (1) The term "residential property" means any real property (including improvements) which is designed for occupancy by one or more families and(A) which is subject to a mortgage which is insured or guaranteed by an agency of the United States; or (B) which is subject to a mortgage held by any federally related financial institution. (2) The term "federally related financial institu tion" means (A) any bank the deposits of which are insured by the Federal Deposit Insurance Corporation; 4 (B) any savings and loan association the accounts of which are insured by the Federal Savings and Loan Insurance Corporation; (C) any thrift or home financing institution which is a member of a Federal home loan bank; and (D) any credit union the accounts of which are insured by the Administrator of the National Credit Union Administration. (3) A residential property shall be deemed to be abandoned if (A) in any case where the mortgage covering the property was executed in connection with the mortgagor's. occupancy of the property, that mortgagor (1) has vacated such property, and (ii) has defaulted on the mortgage secured by the property; or (B) in any case where the mortgage covering the property was not executed in connection with the mortgagor's occupancy of the property, that mortgagor has substantially reduced the level of op erating services or other services below an adequate level, and that mortgagor (i) has defaulted on the mortgage secured by the property; and (ii) is more 1 2 3 4 5 67 5 than six months in arrears in payment of real prop erty taxes on such property. (4) The term "Corporation" means the Neighbor hood Protection Corporation established under section 4. ESTABLISHMENT OF NEIGHBORHOOD PROTECTION CORPORATION SEC. 4. (a) There is established a corporation to be 8 known as the Neighborhood Protection Corporation, which 9 shall be an independent agency of the United States. Neither 10 the Corporation nor any of its functions, powers, or duties, 11 shall be transferred to or consolidated with any other depart12 ment, agency, or establishment of the Federal Government. 13 The Corporation shall maintain its principal office in the 14 District of Columbia and shall be deemed, for purposes of 15 venue in civil actions, to be a resident thereof. Agencies or 16 offices may be established by the Corporation in such other 17 place or places as it may deem necessary or appropriate in 18 the conduct of its business. 19 (b) There shall be a President of the Corporation, who 20 shall be appointed by the President of the United States, by 21 and with the advice and consent of the Senate, and who shall 22 serve as chief executive officer of the Corporation. There shall 23 be a First Vice President of the Corporation, who shall be 24 appointed by the President of the United States, by and with 6 1 the advice and consent of the Senate, and who shall serve 2 as President of the Corporation during the absence or dis3 ability of or in the event of a vacancy in the office of the 4 President of the Corporation, and who shall at other times 5 perform such functions as the President of the Corporation 6 may from time to time prescribe. 7 (c) (1) There shall be a Board of Directors of the Cor8 poration consisting of the President of the Corporation who 9 shall serve as the Chairman, the First Vice-President, who 10 shall serve as Vice-Chairman, the Secretary of Housing and 11 Urban Development, the Secretary of Agriculture, the Ad12 ministrator of Veterans' Affairs, and four additional persons 13 appointed by the President of the United States, by and with 14 the advice and consent of the Senate. Of the nine members 15 of the Board, not more than five shall be members of any one political party. The terms of the Directors shall be at 17 the pleasure of the President of the United States, and the 18 Directors, in addition to their duties as members of the 16 19 Board, shall perform such additional duties and may hold 20 such other offices in the Corporation as the President of the 21 Corporation may from time to time prescribe. A majority of 22 the Board of Directors shall constitute a quorum. The Board 23 of Directors shall adopt, and may from time to time amend, 24 such bylaws as are necessary for the proper management and 25 functioning of the Corporation. |